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Urban Employment in Small Businesses and the Level of Economic Development: Evidence from Chinese Cities

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  • Ana I. Moreno-Monroy
  • Shu Yu
  • Victoria Euse

Abstract

Based on a panel of Chinese cities over the period 2004-2009, we analyze the relationship between the level of economic development and the share of urban employment in small businesses. We find that this relationship can be described by an inverted U-shape. In cities with lower levels of economic development, the restructure of the state sector along with a booming service industry is associated with a higher share of employment in small businesses. On the other hand, in cities with higher levels of economic development, a more vibrant manufacturing sector is related to a lower share of employment in small businesses.
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  • Ana I. Moreno-Monroy & Shu Yu & Victoria Euse, 2016. "Urban Employment in Small Businesses and the Level of Economic Development: Evidence from Chinese Cities," Growth and Change, Wiley Blackwell, vol. 47(1), pages 53-71, March.
  • Handle: RePEc:bla:growch:v:47:y:2016:i:1:p:53-71
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    Cited by:

    1. Canfei He, 2016. "Economic Transition, Urban Dynamics, and Economic Development in China: An Introduction to the Special Issue," Growth and Change, Wiley Blackwell, vol. 47(1), pages 4-8, March.

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